The UK’S financial watchdog has opened an investigation into infrastructure giant Carillion.
The troubled company, which has issued a string of profits warnings recently, has revealed that the Financial Conduct Authority (FCA) is probing the “timeliness and content” of announcements made between December 2016 and July 2017.
As PA reports, this covers a period of turmoil for the HS2 contractor, in which the firm’s share price plunged and its chief executive departed following a warning over profits.
Carillion said it is co-operating fully with the FCA.
In December, the firm, which is desperately trying to reduce its debt levels, struck an agreement with its lenders to defer a crucial financial covenant test, a development that will give the troubled group more breathing space.
In November, the HS2 contractor issued its latest profit warning and said it will breach its debt covenants, which resulted in another share price collapse.
The firm said at the time that annual profits were set to be “materially lower than current market expectations” as it grappled with a string of delays and smaller-than-expected improvements to margins on certain contracts.
In early-morning trading, Carillion's share price fell over 3% to 17.39.